Understanding your money values helps to ensure that your financial decisions align with what matters most to you and your family. These values serve as a foundation for making consistent, purpose-driven choices, while reducing financial stress and potential arguments.
For instance, prioritizing education might mean setting aside funds for college rather than opting for an extravagant vacation. It’s not that you wouldn’t vacation, family memories are important too, but opting for something in-state may align better with your family’s goals than taking three weeks in Bali.
Let’s get practical and discuss some steps to help arrive at meaningful goals as a family. We think you’ll find the exercise itself to be rewarding and insightful.
Reflect on Past Decisions
Take a moment to examine major financial decisions your family has made. Were these decisions driven by a need for security, a desire for freedom, or a spirit of generosity? For example:
- Did you prioritize saving for a rainy day over purchasing luxury items?
- Are you involved in philanthropy, showcasing the value of giving back?
- Are there values represented by your parents and grandparents that you’d like to carry forward?
Have a Family Conversation
The only way to establish family values is… to talk as a family. Host a family discussion and ask a series of questions to each adult or near-adult. Consider sharing the list of questions in advance to help everyone prepare. Think along the lines of:
- Fill in the blank. As it relates to money, our family values _________.
- What does financial success look like to you?
- What are your top three life priorities, and how does money help achieve them?
Involving the younger generation in these conversations not only gives them a voice but also instills a healthy financial mindset early on. For example, discussing how money supports family goals like education or vacations can help children grasp the importance of saving and planning.
List Core Values
Once your discussions reveal recurring themes, write down your family’s core money values. Common examples include:
- Security: Building financial safety nets like emergency funds or insurance
- Education: Saving for college or lifelong learning opportunities
- Generosity: Supporting causes or helping others in need
- Freedom: Reducing debt and saving for travel or retirement
- Legacy: Preserving wealth to pass down responsibly
Defining and living your money values is a journey, not a one-time exercise. It requires reflection, open communication, and regular commitment. By aligning your financial decisions with your values, you not only strengthen your family’s financial health but also cultivate a sense of purpose and harmony.
Start today—your money values can be the compass that guides your financial choices and secures your family’s future.
Any opinions are those of Casey Patrick and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions, or forecasts provided in the attached article will prove to be correct. Individual results may vary.
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected.
This information has been obtained from sources considered to be reliable, but we do not guarantee that the forgoing material is accurate or complete. You should discuss any legal matters with the appropriate professional.
This information was developed by the Oechsli Institute, an independent third party. The opinions of the Oechsli Institute are independent from and not necessarily those of RJFS or Raymond James.
